A judge in Florida recently helped former NFL player Warren Sapp get back on his feet by discharging his bankruptcy case and relieving him of the burden of a portion of his debt. Mr. Sapp is know likely breathing a sigh of relief that is familiar to many Florida residents who have gone through the proper legal channels to reorder their finances and get back on track.
The former professional football player filed for Chapter 7 bankruptcy earlier this year, after he realized that he would be unable to pay an estimated $6.7 million to creditors. Mr. Sapp did hold substantial assets including a large home and some valuable sports memorabilia, but did not have enough to cover the entire amount that he owed to various parties.
Deciding whether to file for bankruptcy is always a difficult choice, but going through the process and utilizing the court’s process for managing debt can also help end months or years of stress from an underwater mortgage or high levels of credit card debt.
Mr. Sapp still has many financial obligations beyond those covered by the bankruptcy filing, including child support payments and tax debt, which cannot be discharged through Chapter 7.
In Florida, Chapter 7 filings have a minimum income requirement in order to qualify. Whether or not someone qualifies is not always clear-cut, since there are certain financial obligations that can be deducted from total income before determining qualification.
More information about filing for Chapter 7 or other types of bankruptcy or debt relief proceedings can be found on our Florida law firm’s website.
Source: TMZ, “Warren Sapp: My Bankruptcy Case is Dunzo,” Sept. 27, 2012.